Rancho Cucamonga CA home loans, real estate loans, home finance information – Allied Home Mortgage Capital

Brent Bruce's Mortgage Insights

Urgency has met Opportunity in So Cal Real Estate

February 2nd, 2009 8:57 PM

Mortgage Finance – Industry Update

Urgency MeetsOpportunity

The Real Estate market inSouthern Californiacontinues to confuse and amaze us all. Record numbers have become the norm and it can seem difficult to find the silver lining. However it only takes a moment to step back from the trees and take a broader view of the forest to see that now is truly the best time to buy a home ever. This is because two powerful forces have come together…Urgency andOpportunity.

Urgency

This can be the part that seems so bad. But in fact it is going to be these factors that drive the opportunity. There is great urgency to buy a home as soon as possible because of three major factors happening in ourSouthern Californiamarket.

First of all interest rates have been at amazing and very rare lows. The Federal Reserve is doing all that it can to coax mortgage rates lower. There was a point in the last few weeks that I could offer a 4.75% 30 year fixed loan. However, these rates have since climbed to 5.75% and there are many industry leaders making a case for why rates might continue to rise into the summer months. Most likely into the 6% range ( like that’s so bad )

The second reason is that bank underwriting guidelines are getting tougher. These are qualifications you must have for the bank to approve your loan. Some people who qualified weeks ago do not qualify today, and people who do qualify today might not qualify in a few weeks. Again there is much reason to believe that these qualifications are only going to get tougher as these hard hit banks try to assess their losses and their risk going forward.

Third, lending sources continue to leave the business. There are less and less banks out there lending money, this again making it more difficult to secure a mortgage.

Opportunity

And here is the greatest reason to act now. Believe it or not homes are selling. Homes are selling fast! In fact, according to DataQuick, in December of 2008 there were 47.9% more homes sold than a year before in December 2007. December of 08 sold 17.6% more homes than even one month earlier in November of 2008. The fact is that these homes are, in some places, 50% less than they were in their peak. These are unbelievable values that many of us thought would never happen.

Many renters can buy homes today and pay less for their mortgage than for their rent. Homes that are priced well are having 5-10 offers from buyers in only one day, and real estate investors are having a field day feasting on the amazing values. These are what economists call indicators, indicators that the market is changing.

So looking at the big picture I can not say it enough, now is the time to buy. Prices are going to rise, rates are on the rise and banks are less and less willing to lend. Now is the time to buy and tomorrow will have less opportunity than today. It is said that you only know the bottom of the market after it has passed, but the indicators are there. Urgency has metOpportunity andnow is the time to buy.

Give me a call to learn more about what a home might cost you, how much you may need as a down payment, and what your monthly payments would be. This is an opportunity that many people thought they would never have. The window is beginning to close so please give me a call before things change again.

Sincerely,

Brent C. Bruce

Branch Manager

Allied Home Mortgage Capital

bbruce@alliedhomenet.com

www.brentbruce.com

909-463-4750

Nothing in this market matters more than who you have on your team. With 40% of escrows falling out it is imperative to work with a Loan Officer who has the experience, products and customer service needed to close with any qualified buyer.

For a one-on-one appointment to explore how we may be able to succeed in this new market, give me a call or email.

Brent C. Bruce

Allied Home Mortgage

Branch Manager

8480 Red Oak Street

RanchoCucamonga

Office - 909-463-4750

bbruce@alliedhomenet.com

Posted by Brent C. Bruce, Branch Manager on February 2nd, 2009 8:57 PMPost a Comment (0)

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